Series 79 practice questionmediumLegal due diligence – anti-bribery compliance
During legal due diligence, which of the following would MOST likely suggest a violation of the Foreign Corrupt Practices Act (FCPA)?
- AUndocumented high-risk payments✓ Correct answer
- BDelayed SEC filings
- CPayments for routine business expenses
- DDisclosure of an IRS audit
Explanation
Why A — Undocumented high-risk payments
Unexplained payments in high-risk areas are red flags for possible FCPA violations. Routine expenses and IRS audits are not FCPA concerns, and filing delays are unrelated to bribery risk.
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